Are Crave Cookies franchisees required to purchase proprietary boxes from Crave Cookies, LLC?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will purchase proprietary boxes from Crave Cookies Franchising, LLC.
Franchisee must purchase proprietary boxes, and items such as shirts, tumblers, gift cards and all other Crave merchandise from Crave Cookies, LLC. Purchasing products and services from us is exclusive and mandatory.
You must purchase the boxes you will use in the operation of the franchised business from Crave Cookies Franchising, LLC.
We currently have negotiated purchase contracts for items such as chocolate, butter and containers. These contracts currently save our franchisees up to 46%.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, franchisees are required to purchase proprietary boxes from Crave Cookies Franchising, LLC. This requirement is explicitly stated in Item 8, which covers restrictions on sources of products and services. Additionally, franchisees must purchase items such as shirts, tumblers, gift cards, and all other Crave merchandise from Crave Cookies, LLC. Purchasing these products and services from Crave Cookies is exclusive and mandatory.
This mandate has several implications for prospective franchisees. It ensures brand consistency and quality control, as all franchisees will use the same branded boxes and merchandise. However, it also means franchisees cannot seek alternative suppliers for these items, even if they find a cheaper or more convenient option. This could potentially impact their profit margins, as they are locked into purchasing from Crave Cookies, LLC, regardless of market prices.
While franchisees are required to purchase proprietary boxes and merchandise from Crave Cookies, they do have the option to request approval for alternative suppliers for other goods and services. Crave Cookies will assess these requests based on criteria such as the supplier's capacity, quality, financial stability, reputation, and reliability. However, the specific criteria for approving suppliers are not disclosed to franchisees. Crave Cookies will provide written notification of approval or disapproval within 30 days of the request.
Crave Cookies also negotiates purchase arrangements with suppliers for the benefit of franchisees, potentially leading to cost savings. For example, they have negotiated contracts for items like chocolate, butter, and containers, which currently save franchisees up to 46%. While franchisees are obligated to purchase certain items from Crave Cookies, these negotiated arrangements could offset some of the costs and provide a competitive advantage.